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D69/100FDD 2025

Premier Pools & Spas — Litigation & Risk

Food & Beverage - Quick Service · FDD Items 3, 4 & 5

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Elevated Risk

37 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
37
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
69 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
8
Government-backed loans issued
Default rate
100.0%
vs <3% typical · system-wide
5-yr default rate
100.0%
Defaults
1 loans
Loans charged off or defaulted
Total loan volume
$1.9M
Avg loan size
$240K
Participating lenders
6

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Tennessee
State whose law governs disputes — relevant if you're not based there

What drove the 69/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count (-0.8% YoY) indicates system contraction and potential market saturation
  2. 02HIGH34 active customer litigation cases involving fraud and consumer protection violations suggest systemic operational or service delivery issues
  3. 03MEDNet income not disclosed in Item 19 prevents franchisee ROI validation; $58,950-$119,000 investment requires transparent profitability data
  4. 04HIGHGoing Concern = False is a critical red flag indicating the franchisor may face financial instability or operational viability concerns
  5. 05MINORRegulatory action by New York State for unregistered franchise sales demonstrates compliance failures and legal exposure
  6. 06MINORFormer franchisee arbitration alleging conspiracy suggests franchisor-franchisee relationship problems and potential disputes over support or territory
  7. 07MINORHigh franchise fee ($45,000) relative to total initial investment (49-76% of total cost) creates upfront cost burden with unclear payback period

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.